1.

Mr. Sharma buys 60 shares of nominal value of Rs 100 and he decides to sell them when they are at a premium of 60%. He invests the proceeds in shares of nominal value of Rs 50, quotes at 4% discount, paying 18% dividend annually. Calculate: (i) the sale proceeds, (ii) the number of shares he buys and (iii) the annual dividend from these shares [3 MARKS]

Answer» Mr. Sharma buys 60 shares of nominal value of Rs 100 and he decides to sell them when they are at a premium of 60%. He invests the proceeds in shares of nominal value of Rs 50, quotes at 4% discount, paying 18% dividend annually. Calculate:
(i) the sale proceeds,
(ii) the number of shares he buys and
(iii) the annual dividend from these shares
[3 MARKS]


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